THE GOVERNMENT says a more comprehensive strategy is needed in order to for the Philippine service sector to fulfill its growth potential.
Citing "Formulating the Philippine Services Strategy for Inclusive Growth," a policy paper by the Philippine Institute of Development Studies, National Economic Development Authority (NEDA) Director-General Arsenio M. Balisacan said that domestic policy reforms, innovation, export promotion, and trade negotiation strategies are needed in order to maximize the service sector's growth.
"The Philippines is considered as having one of the most restrictive policy regimes for services," said Mr. Balisacan in a statement from NEDA on Friday, based on his remarks for the National Workshop on Services, held in Makati City on Monday.
The NEDA chief said that the service sector also faces low productivity, employment vulnerability, and concentration of the work force in the National Capital Region and Calabarzon.
NEDA Deputy-Director General Emmanuel F. Esguerra also noted restrictive provisions in Philippine laws and local government regulations as barriers to a continuous and efficient supply of services.
Mr. Balisacan said service providers could organize themselves into a consortium to encourage synergy. He also urged the negotiation of mutual recognition agreements and other international agreements to ease the movement of Filipino migrant workers to other parts of the world.
Improved coordination among government agencies would also help in policy enforcement for the service sector, he said.
Mr. Esguerra noted that the service sector's contribution to the economy comes in two ways: in their employment and export earnings, and in their inter-sectoral linkages that lead to economic transformation.
Mr. Balisacan promised that the government shall remain focused on its policy commitments to improve the economy. "It shall constantly engage the private sector to help realize substantial gains from available opportunities, including the fast- approaching ASEAN Economic Community," he added. --
Government urges comprehensive strategy for service sector
